• LifeMD, Inc. investigated for securities fraud and unlawful business practices.
• Higher customer acquisition costs pressured business during Q2 2025.
• RexMD platform spent 5-25% more to acquire new customers.
• KeyBanc analyst says LifeMD “took its eye off the ball” in managing customer costs.
• LifeMD investors advised to contact Danielle Peyton at pomlaw.com or 646-581-9980, ext. 7980.
LifeMD, Inc. (LFMD) has been hit with a securities fraud class action lawsuit following its Q2 2025 earnings report. The lawsuit, Johnston v. LifeMD, Inc., et al., No. 1:25-cv-04761 (E.D.N.Y), seeks to represent investors who purchased LifeMD securities between May 7, 2025, and August 5, 2025 [1].
The class action lawsuit alleges that LifeMD made false and misleading statements while failing to disclose crucial information to investors. Specifically, the complaint claims that LifeMD overstated its competitive position and was reckless in raising its 2025 guidance by not considering rising customer acquisition costs in its RexMD segment and costs related to the sale of drugs intended to treat obesity [1].
LifeMD reported disappointing Q2 2025 financial results, missing consensus GAAP EPS and revenue estimates, and reducing its revenue and adjusted EBITDA guidance by 6.7% to 7.3% and 13% to 12% on the low- and high-ends, respectively [1]. This news drove the price of LifeMD shares crashing $5.31 (-44%) on August 6, 2025 [1].
Hagens Berman, a prominent shareholder rights firm, is investigating these claims. The firm is urging investors in LifeMD who suffered significant losses to submit their losses now and encouraging persons with knowledge to assist in the investigation [1].
KeyBanc analyst, Danielle Peyton, advised investors to contact her at pomlaw.com or 646-581-9980, ext. 7980, for further information [2].
References:
[1] https://www.globenewswire.com/news-release/2025/09/02/3142715/32716/en/LifeMD-Inc-LFMD-Hit-With-Securities-Class-Action-After-Shares-Crash-44-On-Q2-2025-Earnings-Surprise-Problems-With-Obesity-Care-and-RexMD-Hagens-Berman.html
[2]
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